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Are you looking to boost your investment returns in 2022? High dividend stocks can be a powerful tool in your investment strategy. In this article, we'll explore some of the best high dividend US stocks to consider for your portfolio this year.
Understanding High Dividend Stocks
High dividend stocks are shares of companies that pay out a significant portion of their earnings to shareholders in the form of dividends. These stocks are often favored by income investors, as they provide a regular stream of income alongside potential capital gains.
Factors to Consider When Choosing High Dividend Stocks
When selecting high dividend stocks, it's important to consider several factors:
- Earnings Consistency: Companies with a history of consistent earnings are more likely to continue paying dividends.
- Dividend Yield: This is the percentage of a stock's annual dividend payment to its share price. A higher dividend yield can be more attractive to investors.
- Dividend Growth: Look for companies that have a track record of increasing their dividends over time.
- Financial Health: Companies with strong financial health are more likely to maintain and grow their dividends.
Top High Dividend US Stocks to Consider in 2022
Here are some high dividend US stocks that are worth considering for your portfolio in 2022:
1. Exxon Mobil Corporation (XOM)
- Industry: Energy
- Dividend Yield: 4.9%
- Why to Invest: Exxon Mobil is one of the largest oil and gas companies in the world. The company has a strong history of paying dividends and has increased its dividend for 39 consecutive years.
2. Johnson & Johnson (JNJ)
- Industry: Healthcare
- Dividend Yield: 3.3%
- Why to Invest: Johnson & Johnson is a diversified healthcare company with a strong reputation. The company has increased its dividend for 59 consecutive years, making it a solid choice for income investors.
3. Procter & Gamble (PG)
- Industry: Consumer Goods
- Dividend Yield: 2.7%
- Why to Invest: Procter & Gamble is a consumer goods giant with a long history of paying dividends. The company has increased its dividend for 66 consecutive years, making it one of the most consistent dividend payers in the market.
4. Cisco Systems, Inc. (CSCO)
- Industry: Technology
- Dividend Yield: 3.2%
- Why to Invest: Cisco Systems is a leading provider of networking and IT solutions. The company has a strong track record of paying dividends and has increased its dividend for 21 consecutive years.
5. Microsoft Corporation (MSFT)
- Industry: Technology
- Dividend Yield: 1.9%
- Why to Invest: Microsoft is a global leader in technology with a strong dividend history. The company has increased its dividend for 19 consecutive years and has a history of reinvesting its earnings back into the business.
Conclusion
High dividend stocks can be a valuable addition to your investment portfolio, especially if you're looking for a regular stream of income. By carefully selecting high dividend US stocks, you can potentially increase your returns and protect your portfolio against market volatility.
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